Question: I’m thinking about filing for bankrupcty but at the same time am not to sure… I have a debt that just doesn’t seem to be coming down at all in payments and i can not seem to keep up with it. So my question is seeing my drive to work is 1 hour from my house if i claim bankruptcy in Ontario is there anyway that i can leave my car outta it and continue to make that payment!!
Answer: Yes, you can. There are two types of debts: secured and unsecured. Unsecured debts, like credit cards, are included in a bankruptcy. Secured debts, like a car loan, are NOT automatically discharged in a bankruptcy unless you surrender the asset.
So, with your car loan, you have two choices. If your payments are up to date and you want to keep making the payments, you can keep your car and keep making your payments.
Your other choice would be to stop making the payments and surrender the car to the lender, in which case any resulting shortfall would be include in your bankruptcy. A bankruptcy trustee can explain the process in more detail.